UK workforce needs skills overhaul, say YFM Equity Partners and WorkBuzz
The Labour government is being urged to do more to address skills shortages and create jobs in the UK's entrepreneur economy ahead of the autumn Budget.
Investor YFM Equity Partners and employee engagement platform WorkBuzz believe Whitehall needs to act urgently as the cost of workforce shortages has reached unsustainable levels, which threatens growth for SMEs and the broader UK economy.
READ MORE: Why is the UK facing a staffing and skills shortage in cyber and technology?
"The exodus of talent is not just an economic crisis, it’s a clear signal that the UK’s future prosperity is at risk. Without immediate intervention, the cost of inaction will only compound," said Jamie Roberts, head of investment at YFM Equity Partners.
"Entrepreneurial businesses are ready to expand, but their success depends on access to a skilled and diverse talent pool. The government must act to reverse the brain drain and ensure the right policies are in place to support job creation outside traditional business hubs."
The UK's persistent labour shortfalls, which have been exacerbated by Brexit, the digital skills gap, and a sluggish recovery post-COVID, have already stunted entrepreneurial growth for over a decade, the pair said, citing a £16bn annual loss in tax receipts due to the biggest contraction in the UK workforce since the 1980s.
CEO of WorkBuzz, Steven Frost said: "As we approach the AI revolution, the UK’s workforce needs an immediate skills overhaul.
"Without decisive government action, we risk falling behind in the global race for innovation. The new budget is a pivotal moment to upgrade the workforce for the future."
YFM and WorkBuzz have proposed government-backed initiatives, which focus on:
- Upskilling the domestic workforce in digital transformation, manufacturing, and AI.
- Incentivising the dispersal of talent across regions with significant growth potential, reducing reliance on London and the South East.
- Supporting international talent attraction by revisiting and expanding programmes like the Global Talent visa scheme, which has been weakened by funding constraints.
YFM Equity Partners said the full ten point manifesto can be seen HERE.
